One of the decentralized blockchain platforms Tezos(XTZ) co-founder Kathleen Breitman in an interview with Bloomberg Technology today Celsius bankruptcy and bear market talked about.
Referring to the crypto lending company Celsius, Breitman said that some projects are built on weak foundations, so bankruptcies and liquidity crises do not surprise them.
According to Breitman, such projects are based on a certain theory but have no practical aspect. The famous founder, who thinks that many projects that do not serve such a specific purpose, may collapse, added that the number of collapsed assets may increase.
“These Bankruptcies Are Useful”
Breitman believes that eradicating such weakly-based projects in bear markets is beneficial in the long run, and that such corrections are necessary for the healthy growth of the market.
The economy has laws that transcend the word blockchain. So it’s no surprise that something like Celsius goes bankrupt.
We’ve seen a lot of wobble on projects that don’t work and are purely theory-based.
This number will always increase if you do not follow a sustainable protocol or business.
Speaking about the bankruptcy of 3AC, the founder said that the company’s business model is risky and that it is inevitable that it will fail. Breitman described 3AC’s business model as “uniquely bad.”